Reinsurance News

Claims from Australian flooding hit $5.134bn

29th July 2022 - Author: Pete Carvill

The Insurance Council of Australia (ICA) says that more than $2bn has been paid out to customers impacted by the flooding in February and March that hit south-east Queensland, the Northern Rivers, and other parts of new South Wales.

ICA logo newAccording to the ICA, the latest figures are an increase of 6% from last month to what it calls a ‘record-breaking’ $5.134bn.

Andrew Hall, CEO of the ICA, said in a statement: “The February and March East Coast Flood is continuing to break near 50-year records, demonstrating just how devastating this catastrophe was for so many communities. Insurers continue to employ more people and contractors to resolve claims for impacted customers, however delays are being experienced because of a shortage of experts needed to make assessments and significant constraints on builders and building materials.”

He added: “The Insurance Council looks forward to reviewing the findings of the O’Kane-Fuller Inquiry and will continue to advocate strongly for governments to increase investment in effective long-term mitigation solutions for communities at risk of flood and other extreme weather events.

“The scale and impact of the increasing likelihood of further events, as detailed in the CSIRO report, make it imperative that the rebuild and reconstruction from this flood significantly improves the resilience of these communities to future extreme weather events.”

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The ICA said that nearly 40% of claims have been paid out by value. It said that of the 230,000 claims made from the event, 36 per cent are now finalised and closed. The average claim is $22,000, with personal claims averaging $17,000 and commercial claims averaging $71,000. The number and value of claims is evenly split between New South Wales and Queensland.

The new data comes as the CSIRO’s one-in-a-decade megatrends report reveals the cost of natural disasters is expected to triple over the next 30 years as climate change worsens.  The report echoed calls from the Insurance Council to increase Federal and State Government investment in measures to improve household and community resilience.

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